Mumbai headquartered Shapoorji Pallonji Group, a real estate and construction conglomerate, finalized a $3.4 billion private credit agreement. This marks the largest private credit deal of its kind in India to date. The agreement involves a three-year, zero-coupon rupee bond with an annual yield of 19.75%, and the proceeds will primarily be used to refinance existing debt.
Deutsche Bank served as the sole arranger and trustee for the deal. While official comments are pending, approximately a dozen major global investors, including Ares Management Corp, Cerberus Capital Management, Davidson Kempner Capital Management, and Farallon Capital Management, are reportedly participating.
This transaction highlights the significant growth in India’s private credit market, driven by increasing demand for infrastructure funding. Private credit is becoming an increasingly attractive and accepted financing option for developers and industrial houses seeking flexible and fast funding. The deal also underscores the rising confidence of international investors in India’s private credit sector, with firms such as KKR, Oaktree Capital, and Goldman Sachs expanding their involvement.
Domestic asset managers, such as Kotak Alternate Asset Managers, are also increasing their participation, with plans to raise a $2 billion private credit fund. This convergence of global and local interest is intensifying competition and providing borrowers with a wider range of capital sources.
The Shapoorji Pallonji Group, a family-owned business with a 150-year history, has developed notable projects such as the Reserve Bank of India headquarters and the Al Alam Palace in Oman. The company has a growing international presence in the Middle East and Africa. This record-breaking deal coincides with a surge in large-scale debt activities across India.
Last updated: December 26th, 2025
